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Donald Trump renews effort to fire Federal Reserve governor Lisa Cook
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The US president has clashed with Federal Reserve members over his bid to rapidly slash interest rates despite inflation.The White House has revived its efforts to remove Lisa Cook, the first Black woman to serve as a governor at the Federal Reserve, the United States’ central bank.On Friday, media reports emerged that the administration of President Donald Trump had sent Cook a letter threatening her position at the Federal Reserve.Recommended Stories list of 3 itemslist 1 of 3US Fed holds interest rates steady, citing ‘elevated’ inflationlist 2 of 3US labour market sheds jobs in July as labour force participation slumpslist 3 of 3US court deals blow to Trump’s bid to scrap climate grant programmeend of list“You are hereby provided notice that the President is considering removing you from your position,” the letter read.Signed by White House Deputy Chief of Staff Dan Scavino, the letter gave Cook a deadline of three weeks to respond to unproven allegations that she had committed mortgage fraud.It also warned that the crime she was accused of was punishable by up to 30 years in prison. Her conduct, the letter added, constituted negligence that calls into question her trustworthiness as a Federal Reserve governor.Trump first unveiled the claims against Cook in August 2025, in a push to fire her from her role.No other president since the central bank’s founding in 1913 has sought to oust a Federal Reserve governor.The central bank has historically been insulated from political pressure, and under the law, Federal Reserve governors can only be removed by the president “for cause”. A full term runs 14 years.Such laws aim is to shield the central bank from making economic decisions based on political pressures.But Trump has undertaken an aggressive campaign to slash interest rates, which are elevated as a means of combatting inflation.He has also sought to rid the federal government of appointees aligned with his Democratic predecessors. Cook was nominated in 2022 under President Democrat Joe Biden, Trump’s two-time election rival.Trump’s claims against Cook centre on the idea that she listed two homes as her primary residence: one in Georgia and the other in Michigan. That could have made her eligible for favourable mortgage rates.But there is no conclusive evidence so far that Cook sought to deceive lenders, making a successful fraud prosecution unlikely.In June, a US Supreme Court ruling also blocked Trump’s attempt to fire her, though it did clear the way for the president to fire the heads of other independent agencies.The letter sent to Cook this week was dated August 5. That same day, Cook spoke at an economic luncheon in Alaska, saying inflation is “too high” and indicating that she is “prepared to act” by raising interest rates, a position shared by others at the Federal Reserve.Trump has long sparred with the Federal Reserve over interest rates, repeatedly threatening to fire former Federal Reserve Chair Jerome Powell for refusing to bow to his demands.Kevin Warsh, a Trump appointee, took over Powell’s position as chair in May. He has yet to deliver Trump’s wished-for rate cuts, amid stubborn inflation.“We should have the lowest interest rate in the world,” Trump said after last week’s decision by the Federal Reserve to hold interest rates steady for the fifth consecutive time.In a statement, Cook’s legal team said “there is no valid cause” for removing her from her position.“As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed,” lawyer Abbe D Lowell said.
The BBC has asked Fifa president Gianni Infantino if he has the support of football's South American governing body, Conmebol.The Fifa head has faced multiple calls to resign after his highly controversial attempt to sell private stakes in the World Cup, which he later abandoned.Infantino, who did not answer the BBC's questions, was in Colombia for the inauguration of the country's new President Abelardo de la Espriella.The BBC's South America correspondent Ione Wells later asked the Fifa president if he would step down.Read more: Politicians, private jets and power - the life of a Fifa president
Announcing the salary hikes, the president praised the courage and sacrifices of members of the armed forces confronting "the scourge of banditry, kidnapping and terrorism"."The men and women who help to keep us safe in our homes must be supported and appreciated in the course of their duties to our nation," he said in a statement."I urge our servicemen to take our gesture as a sign of our deep appreciation of the services they render to our fatherland. Together we shall prevail over the enemies intent on destroying the fabric of our nation."Successive Nigerian governments have struggled to contain insecurity despite increased military deployments and spending.Islamist insurgents, including Boko Haram and the Islamic State West Africa Province (Iswap), continue to stage attacks in the north-east, while heavily armed criminal gangs - which loot and kidnap for ransom - operate across parts of north-west and north-central areas.Other security challenges include separatist unrest in the south-east and deadly clashes over land between farmers and herders.The most junior personnel are to receive the biggest salary hike:Privates up to staff sergeants: 80%Warrant officers up to colonels: 50%Brigadier generals up to generals: 30%.This will see the military's annual wage bill jump from $484m to $678m."This is what we have been calling for a long time," military expert Bashir Galma, a retired major general, told the BBC.Though he expressed concern that future administrations might struggle to sustain such funding, given the significant jump in the military's annual salary bill.Serving personnel approached for comment have said they will reserve judgment until the new salaries are reflected in their bank accounts.Galma also argued that other security agencies should receive similar pay reviews, stressing that "keeping the country safe is a joint effort".Beyond salaries, he said broader welfare issues also required attention including uniforms, boots and, most critically, new rifles to tackle the ongoing crises."All these are also important areas," he said.Tinubu has said his administration will continue to prioritise troop welfare and to modernise the armed forces with the weapons and technology needed to tackle security threats.Under his recent reforms, the army will have now 12 divisions spread over the whole country to ensure better co-ordination, intelligence sharing and faster response times.
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